Are you affiliated with educational and professional associations? This includes colleges and their related fraternities and sororities, as well as our state and national professional organizations. These organizations promote our success, past, and future. We continue our affiliated out of gratitude and, in some cases, for the continuing professional and personal opportunities they provide.
Our better natures compel us to “give back” to those who help us achieve the success we enjoy today. Typically, we can give our own time and money. However, occasionally we are called on to “solicit” support from other people. Many of us heed the call, but few of us actually like asking for donations.
What if there were a solution that could raise SIGNIFICANT DONATIONS, not just on a single fund-raising drive, but year-round? And, what if that solution was “free” to the association and the donor? This solution exists and can be realized through engaging Retail Benefits, Inc. as part of your fundraising strategy.
Associations that regularly communicate to 10,000 or more people are great candidates for Retail Benefits. This includes most colleges, universities, and their affiliated fraternities and sororities. When Retail Benefits cashback shopping is engaged as an element of fundraising, the following advantages will be realized:
Year-Round Fund Raising – Cashback giving is automatic and on-going. Once the donor signs up and downloads the shopping app, everything happens automatically.
No out-of-pocket expense for donors – Cashback donations are from the money that has always been spent shopping. Therefore, no new donor expenditures are required
Reduce/Eliminate the cost of membership – Association can apply cashback to reduce or eliminate dues making it easier for members to join and/or stay affiliated
Drive engagement – A portion of cashback can be directed to the donor as “donor bucks” to purchase special offers and merchandise (such as hats, shirts, pins, etc.)
Designated donations to multiple purposes – Donations can be subdivided to support annual dues, the building fund, and/or special causes
Messaging – Communicate directly to participants via the app on association business
Phillip Davis
To learn more about cashback shopping and its potential for your association, contact Philip A. Davis at pdavishr@comcast.net or
Doug Reifschneider is a dynamic marketing leader with 30+ years of experience in the restaurant industry. He has a history of driving growth through the creation and delivery of unique, creative brand strategies enhancing customer affinity and market position. While at Firehouse Subs, Mr. Reifschneider helped achieve a 4X increase in locations, to 1,030 restaurants generating $684M in revenues and 19.4% average annual sales.
During his foodservice career, he navigated the ever-changing marketing/advertising environment. The advertising menu proliferated from a relatively short list of tactics (TV, radio, print [direct mail, magazines, newspaper, etc. ], OOH, POP, and direct selling) 20 years ago to thousands of online options which included but was not limited to display, native, SEO, SEM/PPC, web sites, landing pages, mobile and others. Doug has experience with all of it and is always looking for new technologies to exploit such as Blockchain.
Diversity and Inclusion (D & I) is on just about every business leader’s radar these days. But even more important is business continuity due to COVID 19. No industry has been sparred, while some businesses have fared better than others. As a CEO, how do you assess what needs to be done in the D & I space and how do you find the time and money when business resources are being stretched to the max? What is the right answer for my business?
The truth is that every business is different. The culture is different. Values are different. The size of the organization makes a significant difference. The industry is a key factor. And, how do I afford this investment, especially now? There is no “one size fits all” solution. Many CEOs delegate this key business factor to the HR lead in the organization expecting this person to “get it done.”
The problem with this approach is that many HR leads are overloaded with current responsibilities, and often, they have limited experience in this area. ‘D & I’ has recently added an “E,” DEI into the descriptors of this area. The “E” is equity, and the HR lead is generally in a good place to handle this part of the equation through annual salary structure reviews along with advocating for Equity in promotions.
However, most internal attempts hit the wrong mark and are driven bytactics vs a strategy. Any attempts at D & I should start with an assessment and gap analysis with the leadership of the company. Once effectively diagnosed, your company needs to create executive alignment on priorities and pace of the process. And, the D & I strategy needs to be embedded into your current culture and strategic plans vs a stand-alone strategy.
A vast majority of the time, the answer is seeking an outside perspective. Easy to say, but finding the right person is critical. It will require the CEO’s direct involvement with this selection process. Hopefully, I have provided you with some key questions to ask. The most important part of the selection decision is to find a solution that provides a bridge tailored to your culture and is cost-effective. A “sunset” Fractional CDO (Chief Diversity Officer) approach could be your answer to optimizing this decision.
About the Author
Dave Daniels is an accomplished Senior Business and Human Resource executive with a proven track record of developing, implementing, and delivering upon both short and long-term results. He has held management and executive-level positions with companies large and small throughout the United States. Dave has managed his career in a way that provides him with an exceptional breadth of experience and capacity to contribute to improving brand and financial results for his employer in every capacity he has served.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
On March 23, 2020, the S&P 500 Index closed down 2.9% for the day, bringing its total loss from its all-time high to 33.9%. The index was in the midst of its fastest bear market ever. A day earlier, New York Governor Andrew Cuomo had ordered the statewide closure of all non-essential businesses in an effort to slow the spread of the COVID-19 virus, following California’s example and kickstarting a wave of similar lockdowns across states that would ultimately bring the unemployment rate to more than 14%. Although nobody knew it at the time, that day marked the low for the closely watched stock market barometer, and it began a V-shaped recovery. The S&P 500 eclipsed its previous high by mid-August and rose 60% from the March 23 bottom through its most recent high point on September 2.
Having a large allocation to technology and growth companies whose businesses have been more insulated from the negative impacts of the virus certainly has helped the S&P 500, however, all 11 sectors have gained at least 30% from the low. In addition, the Russell 2000 Index, which measures the performance of small-cap companies in the United States, was among the worst-hit during the February-March bear market, but it has actually outperformed the S&P 500 since the market bottom.
History tells us that the gains may not necessarily be over either. While the S&P 500 has already made new all-time highs this month, other key indexes remain well below all-time highs, potentially leaving plenty of room for upside if the economy continues to recover.
Perhaps most importantly, I do not view the recent pullback in stock prices as investors reassessing the durability of the recovery. Since September 2, credit spreads have remained contained, Treasury yields have held steady, and more economically sensitive areas of the market such as industrials, financials, and even real estate have outperformed large-cap growth and the information technology sector. This is the exact opposite of what we saw in February and March. Back in early April when we were just starting to rebound, I told you that based on some reasonable assumptions that I could see the market rebounding to around 3150. While we have seen a significant market decline in September, I am raising my year-end fair value target for the S&P 500 to 3,350-3,400, implying a little upside still to come through the remainder of 2020.
Integrated Financial Group
Kevin Garrett – Integrated Financial Group
My firm specializes in working with people that experience what we call “Sudden Income.” Typically the income came from one of these events:
1) Accessing and Managing Retirement Assets
2) A Performance Contract (Typically a Sports or Entertainment Contract)
3) Divorce Settlement
4) Inheritance or Insurance Payout
5) Sale of a Business or Stock Options
6) A Personal Injury Settlement
I believe the unique nature of these events requires specialized professional experience, empathy, and communication to deal with both the financial changes and the life changes that inevitably come with them.
My clients value my ability to simplify complex strategies into an actionable plan. They also appreciate that I am open, non-judging, and easy to talk to about their dreams and fears. Each client defines financial success differently and my goal is to guide them from where they are now to where they want to be. As my client’s advisor, my goal is to provide them with a lifetime income stream, improving returns, protecting their funds, and managing taxes.
Firm Specialties:
Retirement Planning For Business Owners & Executives
Woman’s Unique Financial Planning Needs
Professional Athletes
Investment/Asset Allocation Advice
Estate Planning
Risk Management
Strategic Planning
Kevin was listed in The Wall Street Journal as “One of the Financial Advisors In The Southeast That You Need To Know”
Kevin was listed in Forbes Magazine’s Annual Financial Edition as a Five Star Financial Advisor
Kevin has been awarded the Five Star Professional Wealth Manager in Atlanta Magazine in 2012, 2014, 2015, 2016, 2017,2018, and 2019.
Award based on 10 objective criteria associated with providing quality services to clients such as credentials, experience, and assets under management among other factors. Wealth managers do not pay a fee to be considered or placed on the final list of Five Star Wealth Managers.
KEVIN GARRETT, AWMA, CFS
Integrated Financial Group
200 Ashford Center North, Ste. 400 | Atlanta, GA 30338
Have you gotten this phone call, regardless of where you are in your exit planning? During challenging, tumultuous times, this call comes from many corners. Some are legitimately interested, some are fishing, some are trying to take advantage. It may or may not be the right timing for your exit planning.
Over the last few months, we have heard from several business owners asking for help because they received “the call“.
When this question comes at you, it can be interesting, even exciting. How do you respond?
The best response is to ask for some basic information and let them know you will get back to them. Whether they say they are the potential buyer or representing the potential buyer, ask for their name, phone number, email address, and website. If you can’t get that, politely end the conversation. If they say they are representing another party, ask for the name of that person or company. They may not share this initially but ask. Getting some basic information will help you do some digging. It may be something like “I have buyers that are interested in your business.” If you hear that, consider ending the conversation! In any case, do NOT share any information, financial or otherwise, on this first call. Step back and consider your exit plan.
Even if they are legitimate, remember that they are representing the seller. This is a complex transaction, probably the most complicated one you will ever consider. It will impact your life, retirement, family, and employees for the long-term. Succession planning takes some time.
As I discussed in my last blog (Sell My Business Now? Wait for the Economy?), you need to consider so many factors when deciding if this is the right time for you to sell. It may very well be. Even then, you need experienced professionals who provide transaction services to help guide you through this most important decision and avoid the expensive pitfalls of trying to go it alone.
If you are ready to sell, get professional representation to help manage the process. A business sale is always complicated, even more so under current conditions. If you are not ready yet, start with an estimate of value and some advice on preparing your exit plan – whether your target is one year or 10 years. If you do have time, focus on getting through COVID-19 and building business value: Rebuilding Post-Crisis.
Call if we can help you think through your specific situation. Always happy to have a conversation to provide some guidance!
Stay Healthy & Safe!
David Shavzin
David Shavzin, CMC Exit Strategist – Value Growth, Exit Planning, Succession Planning, Transactions
Yes, for most businesses, this is probably the toughest year over the last few decades. The recession 12 years ago was devastating but 2020 has been a catastrophe in many more ways.
Coming up with an exit plan is more important than ever.
“Should I sell my business now?” We have been fielding this question almost daily since COVID-19 started. In good times it seems that we field that question a bit less. Generally, that should be the reverse. Like with the stock market, business owners too often ride the wave up and assume it will keep rising until they reach the exact moment – and value – that they want. That isn’t going to happen for the vast majority.
Of course, the answer at any given moment depends on so many factors:
Perhaps most importantly the state – and transferrable VALUE – of your Business
Should I sell? Should I wait? When? Price? The answers are different for every one of you reading this article. Our current clients (mid-COVID) range from $0 in revenue to having their best year ever. What is the same for every business, however, is the series of questions and considerations for designing an exit plan.
If the value of your business is down during COVID-19, but still reasonable for your needs, consider selling. Get over the emotion of it being worth more at the beginning of 2020 and don’t gamble on the future. If you cannot jump out at the current value, get hyper-focused now on comprehensive, realistic exit planning. Call if we can help you think through your specific situation.
Whatever your situation, these 5 Action Items Apply:
Get absolute clarity from your CPA or tax advisor and HR consultant on your obligations regarding employment laws under COVID-19 and loan uses / forgiveness. Do what you need to do to have your 2020 financial statements in order shortly after December 31st.
Request an estimate of value based on your best forecast for 2020. This is not an exact science (it never is) but a mid-COVID estimate will give you a baseline for decision-making. Get this done now, you can quickly update it when your numbers are final.
Set out a preliminary goal (target date and value) for the sale of your business.
Design a plan to get from today’s value to your target value by your exit date. Your exit planning should consider: What is working, what needs work, how to get creative…in these 8 areas:
Andy called me early Monday morning. He had a crisis to resolve. It was not a life and death crisis, but a potential blow to his professional credibility and confidence. He was facing the complete failure of a new venture. This series of events began for me on Friday.
Friday, Andy told me that he had been asked to lead the renewal of a successful networking program organized around a “book club” format. The originator of this concept is no longer able to lead the program, but it is a well-established brand with further potential. It is a great honor for Andy to be asked to revive this concept. Unfortunately, Andy did not have much time to plan the first event as the speaker is publishing a new book at the end of September. By supporting the book launch even on short notice, Andy created a win-win situation. His plan was to offer a ZOOM event the following Wednesday and he asked if I could promote it to my network. I agreed, of course. Over the weekend, however, Andy’s promotional plans were dashed. That was the genesis of his Monday morning call.
Monday morning, he explained that he was unable to promote his event as his Internet Service Provider (ISP) suspended his account. He had exceeded his allowed email volume. Unable to advertise he faced a stillborn event. He asked if I could help.
I could relate to his predicament as I had the same experience many years ago. It was the catalyst that led to a subscription with an Email Marketing Service (EMS). This EMS reinforced my brand image and improved the effectiveness of my messaging. I have not had a problem with my email campaigns since. Also, I can leverage the utility of my website and social media accounts by integrating them with my EMS. It is one of the best decisions I ever made.
Problem Solved.
I reminded Andy that one of the benefits of membership with ITB Partners is access to our EMS. He had forgotten that, but he was not familiar with the concept anyway. I explained the value of using an Email Marketing Service and answered his questions; How many emails could we send? How often? How many people could we engage at one time? When his questions were answered, he realized his crisis had been averted.
I went to work on his project. Using his copy, I created an email that will become the template for future campaigns. It represents his brand well and the message is clear. He provided me with three email lists that I uploaded into separate folders to be used for his projects only. Finally, I scheduled the emails to be sent daily, leading to Wednesday’s event. By midday Monday, Andy was back in business.
Build your business or career.
You need not be a major corporation or an online retailer to enjoy the benefits of your address book. It is one of your most valuable assets. I learned this early in my Executive Search Career. I began sending group mailings to demonstrate my vitality. It was a powerful business development tactic. I announced new assignments, which generated interest from prospective candidates. When I announced the completion of a search, prospective clients called me to assist their recruiting for similar positions. Doubtless, this concept will work for anyone.
Personalize your email campaign.
The smart people in transition create a mailing list from their address book. They know that their network wants to hear from them and to help if they can. They use email to keep their contacts up to date on their situation. They understand that their outreach can be even more interesting if they share their thoughts, ideas, and experience in each post. This technique has become an effective way to shorten one’s time in a job search.
Build brand equity.
Back to Andy. Yes, his event was a success. There were the typical first-time logistical problems associated with a ZOOM meeting, but those issues will diminish over time. The presentation was insightful and well-executed. Those who attended the meeting were riveted. Andy did not achieve his attendance goal, but he was not far off. Word will get out. As the quality of his promotional efforts improves, attendance will follow. I am looking forward to working with Andy to help rebuild this brand.
Your address book is valuable! USE IT! If your mailing list is large enough, consider an EMS.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
Are you affiliated with educational and professional associations? This includes colleges and their related fraternities and sororities, as well as our state and national professional organizations. These organizations promote our success, past, and future. We continue our affiliated out of gratitude and, in some cases, for the continuing professional and personal opportunities they provide.
Our better natures compel us to “give back” to those who help us achieve the success we enjoy today. Typically, we can give our own time and our money. However, occasionally we are called on to “solicit” support from other people. Many of us heed the call, but few of us actually like asking for donations.
What if there were a solution that could raise SIGNIFICANT DONATIONS, not just on a single fund-raising drive, but year-round? And, what if that solution was “free” to the association and the donor? This solution exists and can be realized through engaging Retail Benefits, Inc. as part of your fundraising strategy.
Associations that regularly communicate to 10,000 or more people are great candidates for Retail Benefits. This includes most colleges, universities, and their affiliated fraternities and sororities. When Retail Benefits cashback shopping is engaged as an element of fundraising, the following advantages will be realized:
Year-Round Fund Raising – Cashback giving is automatic and on-going. Once the donor signs up and downloads the shopping app, everything happens automatically.
No out-of-pocket expense for donors – Cashback donations are from the money that has always been spent shopping. Therefore, no new donor expenditures are required
Reduce/Eliminate the cost of membership – Association can apply cashback to reduce or eliminate dues making it easier for members to join and/or stay affiliated
Drive engagement – A portion of cashback can be directed to the donor as “donor bucks” to purchase special offers and merchandise (such as hats, shirts, pins, etc.)
Designated donations to multiple purposes – Donations can be subdivided to support annual dues, the building fund, and/or special causes
Messaging – Communicate directly to participants via the app on association business
To learn more about cashback shopping and its potential for your association, contact Philip A. Davis at pdavishr@comcast.net or 678-977-5578.
Why People Leave is a conversation about the four factors of employee engagement – Job, Manager, Team and Culture and how they impact productivity. PI’s motto is Better Work, Better World and the premise is that by understanding human needs and behaviors, we can select a job and company that “fits” our natural tendencies and be happier at work, manage people more successfully and drive company success.
Paula Fowler
Paula Fowler is a strategic leader with a proven ability to create a company-wide vision and drive business results. She has a passion for working directly with entrepreneurs to implement strategies for growth and profitability. Paula has over two decades of management and consulting experience in small to mid-sized businesses across a broad range of functional areas, including sales, marketing, finance, accounting, operations, human resources, customer support, and business development.
She is skilled at analyzing existing operations and implementing strategies, processes, and technology to improve company performance. She believes that entrepreneurs often know what to do – but lack the time or internal expertise to accomplish the task at hand. Paula will deftly tackle the project and drive it to completion.
Paula is also a certified Six Disciplines Coach, a management system for purpose-driven leaders of small to mid-sized companies. Six Disciplines combines on-site business coaching, workshops, and collaborative software to close the gap between the future vision of a company and today’s reality – by engaging the hearts and minds of every employee in the organization and aligning actions.
From the mind of Don Turner – “Creating Clarity in a World of Complexity’
We are in our last installment of “Company Restoration in the New Normal.” I hope you are finding it informative and it is prompting some of your own thoughts about what to expect as we conduct business in this new world, we have found ourselves. Again, I invite you to leave comments on your thoughts so we can all learn together.
“The capacity to learn is a gift; the ability to learn is a skill; the willingness to learn is a choice.”
~ Brian Herbert
In Part 3 we introduced this mind map of the “5 C’s Restoration Strategy” and discussed the first three. In this final Part 4, we finish introducing the last 2 “C’s” and talk about the future.
5 C Restoration Strategy
COMMUNITY
“Alone, we can do so little; together, we can do so much”
~ Helen Keller
Your business operates within a community of Suppliers, Customers, Lenders, Local Government, and more. In “normal” times there is always a level of dependency with each member of this community. I know many companies like to talk about “partnerships” over “vendorships”, but the reality is that there is always a recognition that if needed there are options to replace one member of your community with another – i.e., the “law of supply and demand.”
Given the increased requirements of conducting business in the New Normal, you will be forced to have more detailed, more transparent, and more involved “heart-to-heart” discussions with everyone in your Value Chain. You will certainly need them to be accommodating to your liquidity pressure as they will require the same of you.
If there ever was a need for commitment over-involvement, the New Normal is the time.
With all due respect – and somewhat “tongue in cheek” – you and your business community need to embrace the “swine mentality.”
What does this mean?
For Suppliers associated with some form of fabrication, you may have to jointly work out the flow of raw materials with the flow of cash. As mentioned in the last installment, this will likely have several characteristics to it:
You may have to interactively negotiate cash flow terms between your Supplier and yourself and with your
Customer and yourself. This will require a level of trust
AND transparency that all parties are most likely not accustomed to. Expect to have honest discussions around “normal” margins and temporary New Normal margins – i.e., “I’m working at 20% less margin, can you sell to me for 20% less?” Who knows? In the short-term, you may have to “open the books” to negotiate with your Suppliers and Customers.
If – and that is a big IF – this is done successfully, would fully expect these relationships to evolve into strong “shared goal” partnerships as we evolve into later stages of the New Normal.
For service Suppliers, the challenges maybe even more difficult given that in tough times cutting back on outside services is typically one of the first burn rate reduction initiatives. With this in mind, there will be a renewed focus on monetarily quantifying your value-add to your Customer. This will be a rude “wake up call” for many Service Providers who have ignored this service-providing fundamental for way too long – i.e., paying “lip service” to it in promotional literature without routinely reviewing, refining, and enhancing their value to the marketplace.
You may have to provide a partial service to your Customers for a heavily reduced amount just to keep the business. In this case, you may have to significantly broaden your Customer base providing a narrower focus of services for heavily reduced prices.
All this said, with either fabrication or service Suppliers, I would expect that those business communities that survive and evolve into the New Normal to represent phenomenally stronger entities. This should serve them well in the future.
We addressed “Customers” as a stand-alone item in the 5C Restoration Strategy but it deserves some additional discussion in the context of your business community.
Customers should be open to discussing mutually beneficial arrangements where you can offer a temporarily reduced price and in turn, they will give you a long-term commitment to continue purchasing as the market becomes healthier. As with your Suppliers, you will likely have discussions that involve an entirely new level of transparency.
Again, everyone is simply trying to engage in commerce again. Communication, creativity, transparency, and commitment are the ground rules for the New Normal.
Lenders have always been willing to talk about helping in a distressed situation. Trust me, they don’t want to see you fail – costs them money, time, and a whole lot of paperwork. In the New Normal, there may not be much new capital available through traditional lending institutions (ED: we will briefly address the role of Private Equity at the end) but that is likely not your issue. Early in the New Normal, businesses will most likely be looking to “buy time” in dealing with existing institutional debt.
Relative to new lines of credit, I don’t see this as an impossibility if the Lender is brought into the interactive and integrated discussions that you are having with your Suppliers and Customers. At the risk of repeating myself ad nauseam, this will require complete transparency and a commitment by all members of your business community to work together. “Good and Services” move on the current of “Cash Flow.”
COMMERCE
“When only one party makes a profit that’s robbery; when all parties make a profit that’s business.”
~ Amit Kalantri, Wealth of Words
Last but not least is the business itself. An involved topic but the key points are:
New Normal Marketplace Ground Rules – you must take an honest, fresh look at your value proposition into the marketplace. Think through the real value your offering has to your Customers. If you can’t answer the following four questions succinctly then you have a true “value proposition problem” with your business:
“Why should the Customer listen to you?” 2. “Why should the Customer listen to you now?
“Why should the Customer buy from you?”
Why should the Customer buy from you now?”
There is a “brave new business world” coming via the New Normal and I see only quantifiably value-offering businesses surviving, much less thriving.
SHORT-TERM GAME PLAN – the first step in your Restoration is to deal with all of the aforementioned. In addition, have a Restoration Game Plan that you look at EVERY day, THROUGHOUT the day. Each day should involve laser-focused attention to balancing:
Delivery Cycle Excellence – if your offering is still relevant in the marketplace then there will always be Customers for those who can deliver real value quickly, cost-effectively, and with superior quality.
Liquidity Management – in the early stages of the New Normal, liquidity hiccups can be deadly. Constant vigilance and constant communication backward and forward in your Value Chain is critical.
Culture – remember your employees are no longer coworkers. If you have made the management to leadership transition effectively they are your “Battle Buddies”, your
LONGER-TERM GAME PLAN – obviously the longer we look into the future the less clear our “crystal ball” will be. However, looking into the future is something we all must do – the alternative is to face the professional ignominy of being a “Reaction Manager” versus a “Proactive Leader.” Note, this “looking into the future” is where the art and science – and trust me it is clearly both – of Strategy comes into play.
The fact is that we may not make strategic decisions daily, but in a lifetime of developing and executing strategy, I guarantee you that you are exposed to “strategically-relevant” information EVERY day, throughout the day.
If you don’t have the processes and tools to capture in real-time you should at least set aside some time at the end of every day and ask yourself, “what did I learn today that may impact my long-term direction at some point in the future?” This observation can involve the market in general, Customers, Competitors, Offerings, or the underlying technology that is part of your marketplace. Sometimes it is nothing more than a “tidbit” of news – you need to learn how to identify “potentially” important strategic data (ED: it is a sad testimony to our Business School educational system that many professionals have never been taught to be “Strategic Thinkers”).
An additional observation based on a little bit of experience on the topic is to understand what is becoming LESS important in the marketplace. Many professionals only try to understand the emerging or growing trends – remember how we said that is the “essence” of strategy – and that is a good thing. However, what is often ignored from a resource planning perspective is also trying to understand what is becoming less important. It is amazing how many times I have found organizations still investing significant resources – time, personnel, and capital – on items that are becoming less relevant in their marketplace.
Bottom line, the objective is to gather and organize strategic information in a way that it is useful when you formally sit down with your Team to refine your strategy – whether that be monthly, quarterly, semi-annually, etc. (ED: timing is a function of the “velocity” of your particular marketplace).
“It’s amazing how a little tomorrow can make up for a whole lot of yesterday.”
~ John Guare, American Playwright
FINAL RANDOM THOUGHTS
Given that in recent years I have worked with a lot of Private Equity organizations, a comment or two about how they will play and play into the New Normal seems appropriate.
First and foremost, they will be laser-focused on the survival of their current portfolio companies. They always hold back extra capital – i.e., “dry powder” – to further invest in their portfolio companies when either things have not gone as planned or there is an opportunity to grow even faster. Obviously, nothing prepared them for this economic calamity of a global scale. It is likely that some “fire sales” will be taking place as they identify portfolio businesses that simply aren’t relevant in the New Normal and need to be jettisoned.
That said, once their portfolio is relatively stabilized, expect them to be on a “rollup” frenzy – where a “rollup” is when an investment firm buys multiple smaller companies in the same market with the intent of developing economies of scale and becoming more of a dominating force in that particular marketplace. With the expected business casualties of the New Normal, it is likely to be what we refer to as a “target-rich environment” for buying distressed companies.
As a business professional, it would be to your benefit to follow these rollup activities and look for opportunities for your own business. Ahhh, but that is a topic for another day.
SUMMARY
As we come to a close on our look at restoring companies in the New Normal, let us review what we discussed:
We are NOT going back to normal, there will be foundational changes in our society, our culture, and the manners of how we conduct commerce.
Surviving – much less thriving – will involve far more involved techniques than normally associated with “Restructuring” or “Turnaround” – though the actual stages remain the same
Successful business Restoration will require innovative approaches to managing Cash, Customers, Culture, Community, and Commerce itself
So. we are headed for a New Normal – of that, I have no doubt. Here is to hoping that we can use these “interesting times” to our advantage and make a better world for all.
Particularly in challenging times, success is NOT about knowing the answers to tomorrow – few have that prophetic ability.
Future success is based on asking the right questions today.
Good luck. May you and yours be safe and healthy.
Don Turner, 24 Apr 2020
Don Turner
Don Turner is a serial growth and turnaround executive with success in a broad range of marketplaces and business situations. He is also an internationally recognized Strategist who has deployed his VOGI® Strategy Methodology in over one-hundred organizations ranging from startup to NYSE and NASDAQ public companies. Routinely called in to deal with some of the most difficult business problems, one executive summed it up as, “everything Don touches is better as a result.”
From the mind of Don Turner – ‘Creating Clarity in a World of Complexity’
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
Are you affiliated with educational and professional associations? This includes colleges and their related fraternities and sororities, as well as our state and national professional organizations. These organizations promote our success, past, and future. We continue our affiliated out of gratitude and, in some cases, for the continuing professional and personal opportunities they provide.
Back to Andy. Yes, his event was a success. There were the typical first-time logistical problems associated with a ZOOM meeting, but those issues will diminish over time. The presentation was insightful and well-executed. Those who attended the meeting were riveted. Andy did not achieve his attendance goal, but he was not far off. Word will get out. As the quality of his promotional efforts improves, attendance will follow. I am looking forward to working with Andy to help rebuild this brand.
Again, everyone is simply trying to engage in commerce again. Communication, creativity, transparency, and commitment are the ground rules for the New Normal.
then there will always be Customers for those who can deliver real value quickly, cost-effectively, and with superior quality.
The fact is that we may not make strategic decisions daily, but in a lifetime of developing and executing strategy, I guarantee you that you are exposed to “strategically-relevant” information EVERY day, throughout the day.